The HDB rental market has been on the rise in recent years, but analysts have mixed opinions on its outlook through 2024.

According to some analysts, the HDB market rental market will continue to grow, and average rents are expected to increase by 8-10% in 2024.

HDB rents are expected to increase up to 8% in 2024 due to the temporary relaxation of the occupancy cap.

The decline in private rentals is less than it was in November. This may be due to the slight rise in demand caused by new hires who started work in January.

In 2024, the burden of property taxes and rising values will fall on landlords. Rents could be lower due to the high interest rates.

Private rentals are under pressure to decrease their prices

Analysts also expect the private rental market to continue to soften in 2024.

Rents for private residential property could drop by up to 15 percent in the next year as supply and demand dynamics continue to normalize in 2024.

Condo leasing volume increased 14 per cent in a month to approximately 5,644 units.

This could be because more landlords are willing to accept cheaper rents and more leases are renewed before the New Year, as was seen at the ends of 2022 & 2021. In January 2024 the demand is likely to continue as tenants renew or sign new leases.

The rental volume was down 11,6% for the entire year. It was 12,6 per cent less than the volume average of the last five years for December. The OCR contributed 38.2 % of the total leasing volume.

Rents for HDB rooms have risen across the board

HDB continued to revive its rental market with an increase of 1 per cent in total rents. Rental prices for mature estates increased 1.2 per cent, while those of non-mature estates increased 1 per cent.

Rents for all types of rooms increased, with the exception of four-roomers.

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HDB rents have increased 10.1% year-on-year. Rents in mature estates grew by 10.4%, while rents in non-matured areas grew by 10.3%.

Rents are not expected to rise despite the tightening HDB market and the reduced number of flats with minimum occupation periods, as affordability is still tenants’ main concern.

HDB rental rates are expected to stabilize in 2024. A slight increase of between 1 to 3 percent is anticipated.

Analysts expect HDB rents to begin declining in the 1st quarter of 2024. HDB rental rates will not be able to continue defying gravity, as private residential rentals are expected decline in 2024.

Executive flats saw the highest rental increases of the year, at 14.7%. This was followed by the five-roomers (10.1%), three-roomers (10.1%) and four-roomers (9.9%).

HDB leasing increased 7.4 percent in December to approximately 2,891 flats from 2,693 units.

The volume in December was 12.8% higher than it was in December 2022. However, the average five-year volume for December months is 0.10% lower.

Three-roomers accounted for 34.1% of total leasing volume. Three-roomers made up 34.1% of the total leasing volume, followed closely by five-roomers and executive flats (5.7%).

Last December, the rental price of condos fell for the fifth straight month. This erased the growth in the first six months of 2023. HDB rental prices and volumes continued to rise, but the Housing and Development Board (HDB).

The flash data released Thursday, January 18, by SRX and 98.co showed a 0.5-percent decline in condo rental rates from the prior month. Rentals fell across all regions.

Overall, condo rents in December 2022 were 2.6% higher. Rents for the Outside Central Region and Rest of Central Region were respectively higher by 4.4 and 2.6 percent. Core Central Region rents (CCR) were higher by 0.9 per cent on the previous year.